New start-up businesses in the UK are as abundant as ever, but issues within society, climate change, and the cost of living have proven tricky obstacles to navigate.<\/p>\n
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Today marks \u2018Better Business Day\u2019 \u2013 the launch of a campaign by The Better Business Act, which is calling for an amendment to Section 172 of the Companies Act in order to benefit start-ups and small businesses.<\/p>\n
A growing coalition of over 2,000 UK businesses is now involved with the campaign, which will today see the Better Business Act speaking with MPs, policymakers, and business leaders in Westminster.<\/p>\n
Why is change being called for?<\/strong><\/p>\n Section 172 of the Companies Act sets out several duties that directors owe to a company. It requires directors to promote the success of the company so that it benefits the shareholders.<\/p>\n This legislation does not consider other responsibilities that a company has, including societal and environmental. The Better Business Act wants to see this amended, so it aligns social and environmental impact with shareholder returns.<\/p>\n Climate change is under the microscope like never before, so it is a widely popular view that the interests of people and the planet are given as much concern as those of shareholders when boardroom decisions are made.<\/p>\n How does this affect start-ups and small and medium-sized enterprises (SMEs)?<\/strong><\/p>\n With Section 172 of the Companies Act, larger companies are profit driven and often prioritise quick returns for the shareholders. For start-ups and SMEs, these methods are not as feasible as they usually lack the investment and funds to achieve these short-term goals.<\/p>\n The above is just one example of the stumbling blocks these businesses face when being forced by this legislation to act in similar ways to much larger, wealthier companies.<\/p>\n Amendments to the legislation would level the playing field for start-ups and SMEs and see a greater balance between profit and purpose across all businesses around the UK.<\/p>\n According to the Federation of Small Businesses (FSB), SMEs account for 99.9 per cent of the business population, while in 2022, a staggering 774,420 start-ups were created. These figures show the need for equality, as these smaller companies are vital to the overall business landscape in the UK.<\/p>\n Need advice about your start-up or new business? Contact us today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" New start-up businesses in the UK are as abundant as ever, but issues within society, climate change, and the cost of living have proven tricky obstacles to navigate.<\/p>\n","protected":false},"author":1,"featured_media":2410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3,80,12,4],"tags":[],"yoast_head":"\n